CONTENTSTART
The purpose of Kinder Morgan’s Operations Management System (OMS) is to capture our important operational objectives and expectations into a single management system. A management system is a framework that an organization uses to direct and control work to achieve its objectives in an intentional and continual manner. Every employee should be familiar with and receives annual training on the OMS.
The main components of our OMS are:
oms.jpg
  • sets forth goals and policies for our physical operations;
  • describes our approach to sound operations;
  • sets forth the roles and responsibilities for conducting sound operations;
  • establishes processes to be followed in pursuit of our operations goals;
  • incorporates our environmental health and safety (EHS) requirements; and
  • provides for periodic changes, audits and assessments to improve and assess compliance with the OMS.

The OMS sets the goals, how we get there, each person’s responsibility in meeting those goals and a process for improving the system. The OMS establishes intentional, routine risk management activities, including the meetings below, that are designed to maintain compliance, to reveal and manage risk, and to continually improve our safety and compliance culture. To continuously improve, we publicly report our EHS performance and strive to be better than industry averages and our own previous three years of performance.

Weekly Meetings
Meeting Operations Topics Covered Personnel Involved in Process

Monday Management Meeting
Financial performance and EHS Incidents
Office of the Chairman, COO, Business Unit and Operating Company Presidents, CFO, General Counsel, Corporate Department Management
Monthly Meetings
Meeting Operations Topics Covered Personnel Involved in Process

Business Unit Operations Meeting		  
  • progress toward reducing risk of high consequence assets and operations;
  • internal and external incidents, near misses and lessons learned;
  • process improvements, efficiency and productivity improvements;,
  • progress on implementing systems to more assets and operations, more Operations Goals, and more regulatory and other requirements;
  • leading indicators and their meanings;
  • significant results of internal and external audits, evaluations, and assessments Including status of corrective actions where available;
  • stakeholder feedback; and
  • other KPIs.
Business Unit Presidents, Operating Company Presidents, COOs, Operations VPs and Directors
Quarterly Meetings
Meeting Operations Topics Covered Personnel Involved in Process

Quarterly Business Review		  
  • proposed best practices for consideration across Kinder Morgan;
  • conflicts in interpretations of regulatory requirements identified by the EHS or legal departments;
  • proposed modifications to the OMS;
  • updates from the Working Groups; and
  • internal and external incident and near miss trends and lessons learned.
Director level or above

Operations Group Meeting		  
  • proposed best practices for consideration across Kinder Morgan;
  • conflicts in interpretations of regulatory requirements identified by the EHS or legal departments;
  • proposed modifications to the OMS;
  • updates from the Working Groups; and
  • internal and external incident and near miss trends and lessons learned.
COO, Corporate VP EHS, Business Unit COOs, Working Group Leads

Operations Working Groups
Incident Review; Pipeline Integrity; Operations Management System; Security; Disaster Preparation, Response and Recovery; and Regulatory Compliance
Working Group Members
Annual Processes
Meeting Operations Topics Covered Personnel Involved in Process

Budget		  
  • Staffing, assets, systems and other resources needed for the Business Unit to operate in a safe, environmentally sound and efficient manner
  • Capex, Opex, Margins
  • Adjust budget for projects, contract changes etc.
  • Translated to a monthly plan
Manager level or above

Audit Plan
Operations audit plan review and approval.
Operational Audit Group, Legal, Corporate VP EHS and COOs

Incentive Compensation
The Office of the Chairman will consider operations performance, including meeting Environmental, Health, and Safety targets, in allocating available incentive compensation among the Business Units and Business Unit Management will consider operations performance in allocating incentive compensation to individual employees.
Office of the Chairman, COO and Business Unit Management
Additional Processes
Additional Processes
2-3 years    

Safety Culture Survey
Employee survey to gauge employee perception of their safety culture and how this culture is changing over time.
Business Unit Management and Operations
CONTENTEND